Olympic to invest Tk42cr for expansion

The Olympic Industries Ltd is going to invest Tk42 crore for its expansion.

In a statement published on the Dhaka Stock Exchange (DSE) on Monday, the company said that the amount will be jointly funded with cash and bank financing.

The company also informed that money will be spent on importing a new 1.80-meter width cracker and hard biscuit line, complete with ancillary & packing machinery, flour & sugar handling systems and gas generator etc from Italy, China, Hong Kong, and India, and also on procuring some items from local sources.

The investment will be made to produce new premium varieties of cracker and hard dough biscuits of around 12,442 tonnes per year.

Olympic, one of the largest biscuit manufacturing companies in the country, also said that it will be re-arranging its total existing and upcoming production facilities to ensure production of around 1,29,656 tonnes of biscuits and bakery items each year.

The company believes that the above decisions of the board will help to control costs, stabilise and improve quality of products of the company, create capacity for high count varieties and thus to increase overall production capacity.

In its statement, the Olympic Industries Ltd has also informed that one of its foreign shareholders, Kingsway Fund - Frontier Consumer Franchises, which holds 22,754,952 shares, representing approximately 11.38% shares of the company, placed a request to appoint Tanvir Ali as their nominated director in the board of the company.

The board of directors has been pleased to approve and accept the request, the statement reads.

The earnings per share (EPS) of Olympic have increased by 8.2 percent to Tk10.13 for the 2019-20 fiscal year (FY), as against Tk9.36 for the same period of previous FY.

On October 28, the company recommended a 52 percent cash dividend.

The company’s market capitalisation currently stands at Tk3,468.94 crore.